The Model 3 is Tesla's first consumer-friendly, electric car.
Priced at $35,000 before tax incentives, the Model 3 will compete
with the Chevy Bolt, which is $37,500, that is hitting
dealerships before the end of the year.

The Tesla Model 3 received about 400,000 pre-orders.

Elon
Musk.Thomson
Reuters

There's been concern that Tesla's one factory in Fremont,
California won't be able to handle the demand for the Model 3.

Business Insider's Matt DeBord has gotten into the weeds
about this,
pointing out that the Fremont plant has the capacity to
assemble 500,000 vehicles annually, but is only producing a
fraction of that. Tesla's 2016 goal is to ramp up production
to about 100,000.

The Fremont factory will have to handle the Model 3 on top of
production for the Model S and Model X.

In a September interview with Y Combinator's Sam
Altman, Musk acknowledged the factory's production line had to be
faster.

"Actually, our speed on the line is incredibly slow," Musk told
Altman. "I think we are ... in terms of the extra velocity of
vehicles on the line, it's probably about, including both X and
S, it's maybe five centimeters per second. This is very slow."

Musk then added that he's "confident" Tesla can get a twentyfold
increase of that speed.

Tesla produced 25,185 cars in the third
quarter and reaffirmed its guidance for the second half of
2016 at 50,000 vehicles. Tesla is on path to hit the low-end of
its delivery goal of 80,000 to 90,000 cars.

Musk has set an ambitious target of delivering 500,000 cars
annually by 2018 and one million cars by 2020.